Banks That'll Rise with Rate Hikes

Forget popular wisdom -- some bank stocks do just fine as interest rates climb, say S&P analysts Evan Momios and James O'Brien

The conventional wisdom is that as interest rates climb, financial stocks will suffer. But Evan Momios and James O'Brien, Standard & Poor's analysts of banking and financial-services stocks, point out that the banking industry is so diverse nowadays that this is no longer necessarily the case. Higher rates are "positive for a wide array of businesses, such as credit-card issuers, for example," says Momios. "But on the other hand, they're negative for companies that specialize in residential mortgages."

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